Use estimation to select the best response. Do not calculate.
If your credit card balance is $650 and the interest rate is 12% APR, then the credit card interest charge is

A) $8.25
B) $65
C) $6.50

Question

Use estimation to select the best response. Do not calculate. ​
If your credit card balance is $650 and the interest rate is 12% APR, then the credit card interest charge is
​
A) $8.25
B) $65
C) $6.50

Quizplus · Accepted Answer

The interest charge for one month is approximately 1% of the balance (12% APR divided by 12 months), which is about $6.50.

Use Estimation to Select the Best Response